I know that come 2012, anyone on the C2W scheme will start paying VAT on their monthly payments … its a done deal and I know its been talked about before.

But can someone explain to me why that change is not considered a change in the terms of you contract that you signed when you start the 12month deal? And if so, should you not need to re-sign the contract, or at least agree to it?

I understand that the final value thing isn’t something that your supposed to know until the end of the 12months … however, you do sign agreement into paying out a set/agreed amount each month for a period of 12 months. To me, thats a type of contract which both should be held to.

Why is it that they can come along and change that amount without you agreeing to it ?

Or is that an overly simplistic view of things ?

VAT is a tax so probably not related to the contract itself?

1) Who is your contract with?

2) Who mandated the charging of VAT?

I’ve just re-read the HMRC guidance and it appears to me that VAT has always been payable on the monthly hire payments and the final payment.